If a Person Owns 2,000 Shares in a Corporation That

question 25

Multiple Choice

If a person owns 2,000 shares in a corporation that has issued 200,000 shares of stock, that person owns ____ of the company and is entitled to ____ of the dividends.

• A)1 percent; 1 percent
• B)2 percent; 2 percent
• C)10 percent; 10 percent
• D)20 percent; 20 percent

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Definitions:

No-action Letters

are statements issued by regulatory agencies indicating that the agency does not intend to take legal action against a specifically proposed activity.

Exempted Offerings

Securities offerings that are released from the registration requirements with the SEC, generally due to their limited nature.

Shareholder Proposals

Suggestions or demands made by shareholders for consideration and action by the company's board of directors.

Rule 10b-5

A regulation enacted by the Securities and Exchange Commission dealing with fraud and manipulation in the securities markets.